A novel agribusiness model for backward linkages with farmers: a case of food retail chain

One of the leading food retail chains, ‘Spencers’ have established backward linkages with farmers for procuring fresh fruits and vegetables. The main strategy of this system ensures a steady and continuous supply of fresh vegetables to the food retail chain and flow of income to farmers. This linkage has been able to change the method of farming and the marketing arrangement followed by the food retail chains. The marketing arrangement by Spencers food retail chain has reduced the market risks and transaction cost of farmers and has helped them in breaking away from the clutches of traditional brokers/wholesalers/commission agents. Direct supply by farmers has allowed the retail chain to simultaneously increase control over quality, supply reliability and price stability. An added advantage of this model is that it provides flexibility to the farmers to exit from this system, if they are not satisfied with its functioning, since there are no written contracts. This model of linkage is specially suited to small and marginal farmers and improves their economic conditions by providing an opportunity to grow and supply high-value vegetables round the year at a fairly decent price. The study has analyzed the impact of food retail chain linkage on farmers.Agribusiness,

Impact of Research Investment on Technology Development and Total Factor Productivity in Major Field Crops of Peninsular India

Increase in agricultural productivity is induced by public investment in research. Several studies have analyzed the impact of research investment at the national level but such analyses at the state or regional level are a few. The present study is an attempt to analyze the pattern and quantify the returns to research investment made over a period of 25 years on major field crops such as rice, jowar, finger millet (ragi), red gram, groundnut, sunflower, cotton and sugarcane in a predominantly agrarian state of Karnataka in peninsular India. The impact of research investment was assessed in terms of technology developed and growth in total factor productivity. The agricultural research investment had profound effect on the development of technologies relating to crop varieties, plant protection and crop management: dominant in cereals and associated with higher research investments, which is in tune with the national objective of achieving food security. Consequently, the rate of return to research investment is quite high in case of rice and sugarcane, moderate for finger millet, cotton and jowar, negative in red gram, groundnut and sunflower. The TFP growth is also higher in crops that attracted higher research investments due to growth in yield as a result of continuous upgradation of technologies. There is a need to achieve higher level of productivity through enhanced research investment for most crops in the state particularly for pulses and oilseeds in order to achieve nutritional security as the state is already food secured.research investment, TFP, technology development, India, field crops, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, O3,

Stability Analysis of Raw Cotton Export Markets of India – Markov Chain Approach

Cotton is an important fibre crop of India which plays a dominant role in the country’s economy by meeting the domestic and export demands. It contributes significantly to both agriculture and industry in terms of farm income, employment and export earnings. India, despite being the third largest producer of cotton in the world, has not exploited its potential to emerge as a major player in the world raw cotton exports. The present level of exports is not consistent and exhibits high variations in volume and revenue earnings. In this paper, the dynamics of changes have been measured in the export of raw cotton from India to different export markets employing the Markov-Chain model. The results have shown China as the sole stable destination for our cotton exports. The other traditional importing countries such as Bangladesh, Germany, Indonesia, the UK, Japan and Korea have recorded low retention probabilities during pre- and post-economic reform periods, indicating unstable export share to these markets.Agricultural and Food Policy,

Geographical Indications for Kodagu Coffee – A Socio-economic Feasibility Analysis

The feasibility of Geographical Indications (GI) for the Kodagu coffee has been explored, as the coffee is grown under shade and unique conditions in the midst of rich biodiversity; as a result, the productivity of coffee turns out to be relatively low. The results have indicated that productivity of coffee is lower (6 q/ acre) when grown under high shade and native tree cover than under low shade condition (8.9 q/acre). Although, the difference in cost of cultivation between the two shade conditions is not significant, the net gain is to the tune of Rs 10.40/kg for the planters growing under low shade and exotic trees cover. The net loss has been estimated to be around Rs 15.50/kg for the planters growing under high shade and native trees cover. The marginal loss in the productivity of coffee due to shade is not directly reimbursable through the shade benefits. Hence, the coffee planters need to be compensated through a price premium for their products produced under rich biodiversity, thus requiring the GI that ensures quality and price.Agricultural and Food Policy,

Optimum Cropping Pattern for Sericulture-dominant Farms in Southern Dry Zone of Karnataka

Sericulture is labour-intensive and well-suited to small and marginal farms with surplus labour, especially female labour. Ample labour and a small land-base encourage farmers to practise sericulture as a subsidiary occupation. While income from crop production is seasonal, sericulture provides a year-round income, which is an important incentive for small farmers to take up sericulture. The agricultural production is seasonal, while consumption is evenly spread over the years. Under such circumstances, the planners and policymakers are confronted with the challenge of formulating a suitable agricultural production policy with which the desired growth of agricultural production can be achieved. In the present study, optimum cropping patterns for different categories of sericulturists have been suggested by selecting Siddlaghatta in Kolar and Kollegal talukas in Mysore as study areas. The primary data have been collected using the personal interview method. The deterministic linear programming technique has been employed to work out the maximum attainable returns by small, medium and large farmers through the optimum allocation of various crops, sericulture and livestock (dairy), using the available resources. The model has suggested fewer crops in the cropping pattern of both the areas. The model has also suggested shifting of the cropping pattern from subsistence-dominated crops like ragi to commercial crops like bivoltine sericulture in the Kolar area and crossbreed sericulture in the Musore area. The suggested cropping patterns have increased the gross income in the range of 83.55 to 388.68 per cent in the Kolar area and 2.71 to 10.70 per cent in the Kollegal area.Agricultural and Food Policy,

Cost Effectiveness of Rainwater Harvesting for Groundwater Recharge in Micro-Watersheds of Kolar District of India: The Case Study of Thotli Micro-Watershed

This study has estimated the supply augmentation of groundwater recharge due to creation of water harvesting structures and has assessed the cost-effectiveness of rainwater harvesting for groundwater recharge on watershed basis in one of the sub-watersheds of the Kolar district, Peninsular India — a typically hard-rock area. The study is based on the primary data for the year 2008-09 collected from a sample of 90 farmers having irrigation bore-wells in the selected watershed named Thotli. The study has indicated that the annual draft of irrigation water exceeds the annual recharge, causing a negative balance. On an average, the returns per rupee investment have been found to be ` 1.80 on farm pond, ` 1.78 on recharge pit and ` 1.39 on field bund. The cost incurred to impound a metre cube of water has been found as ` 3.01 in the case of field bund, where estimated recharge benefit is 5.6 m3, ` 1.67 /m3 in the case of recharge pit (with an estimated recharge benefit of 720 m3), and ` 1.33 /m3 in the case of farm pond (recharge benefit of 1350 m3). The discounted cost-benefit analysis of the investment on water harvesting structures has indicated that the investment on water harvesting structures is cost-effective and financially-viable.Rainwater harvesting, Economic feasibility, Groundwater recharge, Watershed, Agricultural and Food Policy, Q15, Q25,

Contract farming and its implications for input-supply, linkages between markets and farmers in Karnataka

This study is focused on the economic analysis of contract farming with a comparison of income, access to technology and credit of contract and non-contract farmers. The advantages of contract farming for smallholders have also been evaluated. In contract farming, quality inputs such as seeds, fertilizers and plant protection chemicals are provided to the farmers at their farm gate, coupled with the technical advice on production aspects. This not only reduces the working capital needs of farmers but also substantially reduces their transaction cost per unit of output. Borrowing of crop loans has been found 33 per cent higher by non-contract farmers than contract farmers, as the former have to buy material inputs. The net returns have been found higher for contract than non-contract farmers. Within contract farming, net returns have been recorded higher under domestic than foreign contracts for both baby corn and chilli. In the case of non-contract farmers, the net returns (Rs 3,035) have been found less than one-third of domestic contract farmers (Rs 10,610) and slightly more than one-third of foreign contract farmers (Rs 8,050). In the case of chilli also, the net returns realized per acre have been recorded maximum under domestic contract farmers, followed by foreign contract farmers and non-contract farmers. The returns per rupee invested have been noted higher in farming of baby corn in all the three categories than those of chilli farming. The constraints identified in the study include delay in payment and delivery of inputs, delay in lifting the produce, access to seeds, manupulation of grades by the buyers, and high cost of inputs in contract farming. Factors inducing farmers into contract are: low initial investment, better price for the produce, access to market, technical support on package of practices, access to inputs and easy transportation facilities.Farm Management,

Impacts and Implications of MGNREGA on Labour Supply and Income Generation for Agriculture in Central Dry Zone of Karnataka

This study has evaluated the impact of MGNREGA on income generation and labour supply in agriculture in one of the districts in central dry zone of Karnataka. Results have shown that the number of days worked in a year with the implementation of MGNREGA programme has significantly increased to 201 days, reflecting 16 per cent increase. Regression analysis has revealed that gender, education and family size of the workers are the significant factors influencing the worker’s employment under the Program. The increase in income is to the tune of 9.04 per cent due to additional employment generated from MGNERGA. In the total income, the contribution of agriculture is the highest (63%), followed by non-agricultural income (29%) and MGNREGA income (8%). Implementation of MGNERGA works has led to labour scarcity to the tune of 53 per cent and 30 per cent for agriculture operations like weeding and sowing, respectively. There has been a decline in area for labour-intensive crops like tomato and ragi to the extent of 30 per cent due to MGNERGA implementation.MGNREGA, Labour supply, Labour scarcity, Income generation, Employment, Agricultural and Food Policy, J21, J22, J31,